Pak Gov contemplates to apply 'Free Port Strategy' for Gwadar

Karachi: The Ministry of Ports and Shipping is actively considering a proposal to lease out the entire operation of Gwadar Port Authority (GPA) to any private operator, with freedom to implement free port strategy.

In this regard, the government is negotiating with some Middle East companies in private sector to manage the entire operation of Gwadar port, but at the same time, the ministry is also working on giving the GPA on 'Build, Operate and Transfer' (BOT) basis or 'Build, Operate and Own' (BOO) basis.

Sources said that after the opening ceremony of the two-day international conference on Ports and Harbours on Tuesday organised by Karachi Port Trust (KPT).

They said that there was a proposal for partly leasing out, or give the entire port operation of the Gwadar Port on BOT basis. But there are some issues related to the port, like communication and infrastructure, with at least four or five major cities through highways.

Another issue is to provide tax holiday for the port operator, if the government gives formal approval. The port operator has to start its 'operation' from scratch and there should be some relief on such basis, sources said.

They that said all details regarding selection of suitable private sector companies to operate the Gwadar Port would be submitted to the Prime Minister at a later stage.

Presently, the Gwadar Port is carrying out capital dredging through 'China Harbour' at a cost of $50 million grant provided Chinese Government to increase draught from 12.5 to 14.5 metres to accommodate large vessels.

The first phase of the deep-water port project includes three multipurpose berths of 200 metres length each, with 500 metres backup area and related ancillary facilities, five-kilometre approach channel dredged to accommodate 30,000 to 50,000 dead weight tonnage (DWT) cargo handling equipment and operational crafts.

China has provided $198 million, including a grant of $49 million, while Pakistan has contributed $50 million for the first phase of the project.

The master plan envisages in addition to the port, development of projects for the port areas, roads, Export Processing Zone (EPZ), Industrial Development Zone (IDZ), housing and power and water supply to maximise its potential.

The specific objective is to provide port facilities at the strategic location opposite to strait of Hormus and on the mouth of Persian Gulf and provide warehousing, transhipment and industrial facilities for trade to over 20 countries, including Central Asian States, Afghanistan, neighbouring Gulf states, East Africa, Red Sea and North West India.